BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2443
                                                                  Page  1

          Date of Hearing:   May 9, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                    AB 2443 (Williams) - As Amended:  May 3, 2012 

          Policy Committee:                              Water, Parks and 
          Wildlife     Vote:                            7-3

          Urgency:     No                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill establishes a mussel infestation prevention fee, 
          levied annually on vessels, to fund local and state efforts to 
          combat invasive mussel infestation.  Specifically, this bill:

          1)Requires the Department of Boating and Waterways (DBW) to 
            adopt emergency regulations, following consultation with a 
            technical advisory group of interested parties established by 
            DBW, to impose an additional vessel fee, not to exceed $10 per 
            vessel.

          2)Directs fee revenue to the Quagga and Zebra Mussel Infestation 
            Prevention Account, established by this bill within the 
            General Fund.

          3)Restricts use of fee revenue, upon appropriation, to the 
            prevention of dreissenid mussel infestation, as follows:  (a) 
            85% for grants to local governments and joint powers 
            authorities for the reasonable regulatory costs of 
            implementing an adopted mussel infestation prevention plan, 
            and (b), 15% to the Department of Fish and Game (DFG) to 
            conduct vessel inspections and related activities, consistent 
            with existing statute, to prevent the spread of mussel 
            infestation in those areas of the state where a local mussel 
            infestation prevention plan has not been adopted.

           FISCAL EFFECT  

          1)Onetime costs in 2012-13, ranging from $75,000 to $150,000, to 
            DBW to establish and consult with the technical advisory 
            group, to develop and adopt emergency regulations for 








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            collection and use of the fee, and to establish grant program 
            procedures and criteria.  (Harbors and Watercraft Revolving 
            Fund). 

          2)Onetime costs in 2012-13 of approximately $150,000 to the 
            Department of Motor Vehicles (DMV) to update vessel 
            registration fee collection systems and information (Motor 
            Vehicle Account).

          3)Annual costs to DBW of approximately $150,000 (equivalent to 
            one staff member, plus overhead and miscellaneous costs) to 
            administer the local grant program (Quagga and Zebra Mussel 
            Infestation Prevention Account).

          4)Annual mussel infestation prevention fee revenue of as much as 
            $8.5 million (assuming 850,000 registered vessels and $10 fee) 
            beginning in 2012-13 (Quagga and Zebra Mussel Infestation 
            Prevention Account).

           COMMENTS  

           1)Rationale.  The author intends this bill to establish a 
            dedicated source of funding for efforts to prevent and counter 
            the infestation of the state's waters by dreissenid mussels.  
            The author contends it appropriate to levy a fee on vessels 
            that operate in the state's nonmarine waters because such 
            vessels contribute to the spread of dreissenid mussels.

           2)Background.   Dreissenid mussels, which include Quagga and 
            Zebra mussels, are highly invasive species that were first 
            discovered in the United States in the Great Lakes region in 
            1988, where they have caused billions of dollars in damage 
            control costs to public agencies and private industry. These 
            mussels spread by clinging to the outer surfaces of boats and 
            other aquatic equipment or by drifting to downstream water 
            bodies as microscopic mussel larva. 

            Since these invasive species reproduce rapidly and in large 
            numbers, they can severely hinder water delivery systems by 
            clogging pipes, pumps and other water intake structures. They 
            are also harmful to aquatic ecosystems by consuming plankton 
            and other nutrients that form the primary base of the food 
            chain. As a result, these invasive species threaten 
            California's irrigation network and the canal system that 
            transports drinking water for millions of Southern California 








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            residents. In addition to menacing the state's natural 
            ecosystems and water conveyance systems, a mussel invasion 
            threatens other valuable state resources, including commercial 
            and sport fisheries.

            Statute authorizes DFG to conduct inspections and order 
            quarantines, closures and decontaminations to control 
            dreissenid mussels, and requires water supply system operators 
            to cooperate with DFG to implement measures to avoid, control 
            or eradicate infestations.  DFG receives approximately $2.3 
            million annually from the Harbors and Watercraft fund to 
            combat invasive mussels. 

           3)Support  .  This bill is supported by the Association of 
            California Water Agencies (ACWA) and several local governments 
            combating mussel infestation who see a need for a statewide 
            program.

           4)Opposition.   This bill is opposed by the California 
            Association of Harbor Masters and Port Captains and other 
            boating organizations, which contend the bill assesses fees on 
            vessels that may never operate in waters infested by 
            dreissenid mussels.  These opponents note DFG already receives 
            funding from the Harbors and Watercraft Fund for mussel 
            infestation prevention and argue it is better to assess fees 
            on vessel operating in specific infested waters.


           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081